Deposit Saving Advice Needed!

DB001

Hi All,

I am soon to be in the fortunate position to inherit a reasonable house deposit sized amount (Approx 20K) and wanted some advice on how best to save/store this money as I am not ready to look at buying property just yet.

Having done some research I am leaning towards a Lifestyle ISA and slowly putting in 4k per year whilst keeping the rest stored in a traditional ISA in the meantime. Is this likely my best option or is there something better out there? Finding getting my head round it all a little confusing!

Thanks in advance!

danlewi2

Sounds like a great plan - you can put 4k in per year and then move a further 4k each year. Keep the remaining monies in a standard ISA - you can operate both.
Also you can transfer your ISA around - ensuring your getting the best interest rates.

pinknsparkly

Are you are DEFINITELY intending to buy a UK property? And one worth significantly less than £450,000 (assuming house prices rise faster than the £450,000 limit is increased)?

If yes to both of the above, then go for it! If not, then be aware that you won't be able to take the money out until you retire (or rather, you can but you'll pay a penalty fee that is more than the government bonus!). If no to either of the above, then maybe consider HTB ISA instead - it has lower contribution limits and can only be used on properties worth up to £250k (outside London) BUT you can close the account at any point penalty free (you'll earn interest on your savings but no 25% government bonus).